Zoetis Inc. (ZTS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+100.5%

$165.52

vs $82.54 price

Levered DCF

$159.48

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.76

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.87×	29.79×	38.85×	32.49×	56.88×	48.11×	42.15×	28.9×
P/B	16.75×	15.51×	18.22×	15.6×	25.48×	20.88×	23.37×	18.91×
P/S	5.89×	8×	10.65×	8.5×	14.89×	11.79×	10.11×	7.09×
EV / EBITDA	15.48×	20.34×	25.98×	21.81×	37.52×	30.7×	27.68×	20.89×
Gross margin	70.5%	69.1%	68.3%	67.8%	68.3%	66.8%	65.7%	65.2%
Operating margin	38.0%	36.6%	35.9%	36.2%	36.0%	34.0%	32.2%	32.3%
Net margin	28.2%	26.9%	27.4%	26.2%	26.2%	24.5%	24.0%	24.5%
Current ratio	3.03×	1.75×	3.36×	2.37×	3.86×	3.05×	2.63×	3.6×
Debt / equity	2.85×	1.41×	1.35×	1.84×	1.48×	1.95×	2.44×	2.95×
Interest coverage	14.8×	14.02×	11.9×	12.35×	11.88×	9.11×	8.34×	8.87×
Dividend yield	1.6%	1.1%	0.8%	0.9%	0.4%	0.5%	0.5%	0.6%
Payout ratio	33.3%	31.6%	29.5%	28.9%	23.3%	23.2%	20.9%	17.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	80.2%	52.1%	46.9%	48.0%	44.8%	43.5%	55.4%	65.4%
Return on invested capital	21.5%	22.2%	19.7%	17.8%	18.9%	15.4%	16.4%	16.6%
Return on assets	17.3%	17.5%	16.4%	14.2%	14.7%	12.0%	13.0%	13.3%
Free cash flow yield	4.1%	3.1%	1.8%	1.9%	1.5%	2.1%	2.1%	3.5%
Earnings yield	4.8%	3.4%	2.6%	3.1%	1.8%	2.1%	2.4%	3.5%
Enterprise value	$63B	$78.8B	$95.7B	$73.2B	$119B	$82.5B	$68B	$46.2B
Net debt / EBITDA	1.76×	1.23×	1.28×	1.34×	1.03×	1.4×	1.91×	2.2×
Cash conversion cycle (days)	315	291	346	327	273	248	252	259